Part of a diversification strategy
SD Guthrie Bhd, one of the world's biggest palm oil producers, is planning to dip its toes into the data center market.
Bloomberg reports the company is planning to develop a green-energy powered industrial park in Johor, Malaysia, which will focus on powering the state's data center sector.
The move is part of a diversification strategy by the palm oil giant, which owns more than 340,000 hectares of farmland across Malaysia. It plans to utilize this land to become a key landlord and green power supplier to data centers across Johor, which is fast becoming the country’s data center hub.
According to the company’s group managing director, Mohamad Helmy Othman Bash, SD Gutherie is currently in discussion with other parties, with an announcement expected “in the next four to six months.”
“Data centers require land, and it has to be strategic, and this is where we can play a role because now we are in the business of providing the land for industrial parks,” he said.
Helmy said the company plans to dedicate roughly 10,000 hectares over the next ten years to establish industrial parks powered by solar farms on its remote properties. By 2030, these ventures are projected to contribute around 30 percent of SD Guthrie’s overall earnings.
In November, the company entered into a Memorandum of Understanding with AME Elite Consortium Bhd. to collaborate on developing a green industrial park within the Johor-Singapore Special Economic Zone. The project will be constructed on 641 acres of land owned by SD Guthrie.
Last week, SD Guthrie inked a partnership with infrastructure company Gamuda Bhd. to jointly develop, own, and operate solar power projects with a combined target capacity of 1.2GW. The first of these plants, located in Kedah, is expected to start operations in Q4.
SD Guthrie is a strategic company of Permodalan Nasional Berhad, Malaysia’s largest unit trust.
Situated near Singapore’s border, Johor is emerging as a key data center hub, attracting developers and operators seeking to absorb demand spilling over from Singapore, where capacity constraints have curbed new projects.
Companies active in the state include PDG, AirTrunk, Equinix, Keppel, ChinData's Bridge DC, STT GDC, and Yondr.
